audi analyst investor day

7/25/2019 Audi Analyst Investor Day

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Audi 2015 1st half

Investor and Analyst Day

Audi 2015 1st half


Rupert Stadler

Rupert Stadler

Chairman of the Board of Management, AUDI AG

Chairman of the Board of Management, AUDI AG


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Worldwide deliveries: best-ever 1st half of the year

Audi deliveries to customers (in thousand vehicles)

869902

1-6/2014 1-6/2015

+ 3.8 %


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Lamborghini: the luxury brand doubles its deliveries

Lamborghini deliveries to customers

956

1-6/2014 1-6/2015

+ 96.9 %

1,882


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Ducati: La Rossa posts new half-year sales record

Ducati deliveries to customers

1-6/2014 1-6/2015

+ 21.8 %

26,779

32,608


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Audi Group: financial key figures

January June 2015

1-6/2014 1-6/2015

2,6712,914

1-6/2014 1-6/2015

Operating profit (EUR million) Operating return on sales

+ 9.1%

10.0% 9.8%


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real estate prices

corporate profits

China: economy is cooling off

growth2015

20157%7%2015

7%

stock markets


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Sales performance: deliveries increase slightly

Audi deliveries to customers

China(incl. HK)273,853

deliveries

+ 1.9 %


deliveries

+ 1.9 %


deliveries

+ 1.9 %


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Europe: Audi is premium brand number one


Western

Europe

+ 4.1 %

Western

Europe

+ 4.1 %

Western

Europe

+ 4.1 %

Spain

+ 10.3 %

Spain

+ 10.3 %

Spain

+ 10.3 %

Italy+ 7.9 %Italy+ 7.9 %Italy+ 7.9 %

Germany

+ 5.5 %Germany

+ 5.5 %Germany

+ 5.5 %


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Russia: car market contracts substantially

in million automobiles

1-6/2014 1-6/2015

1.2

0.7


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United States: Audi grows twice as fast as overall market


USA

93,615

deliveries

+ 11.0 %

USA

93,615

deliveries

+ 11.0 %

USA

93,615

deliveries

+ 11.0 %


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America

127,117deliveries

+ 12.4 %

America

127,117deliveries

+ 12.4 %

America

127,117deliveries

+ 12.4 %

American continent: sales show double-digit growth



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Investment program: Audi follows strategic path

24 billion EUR

until 2019


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Brazil

8,683deliveries

+ 39.4 %

Brazil

8,683deliveries

+ 39.4 %

Brazil

8,683deliveries

+ 39.4 %

Brazil: local production supports leading position in the market



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Mexico: local production will add stimulus


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Products 2015: Audi launches important models


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Outlook: Audi extends portfolio in booming SUV Segment

+36%

worldwide segment growth

2014 to 2020*

* Source: IHS Automotive

Sketch of Audi Q1


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Piloted driving: Audi proves reliability and precision


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Audi on demand: Audi offers mobility service in San Francisco

Exclusive Audi Fleet

Audi Concierge

Digital Access


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Audi 2015 1st half


Audi 2015 1st half


Axel StrotbekAxel Strotbek

Member of the Board for Finance and Organization, AUDI AGMember of the Board for Finance and Organization, AUDI AG


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Audi Group revenueEUR million

Motorcycles segment

EUR 436 million

Automotive segment

EUR 29,348 million

29,784

26,690

1-6/2014 1-6/2015

+11.6%


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Income Statement of the Audi Group (IFRS)EUR million

1-6/2015 1-6/2014 Change

Revenue

Cost of goods sold

29,784

-23,636

26,690

-21,870

+11.6%

+8.1%


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Revenue

Cost of goods sold

Gross profit

1-6/2015 1-6/2014 Change

29,784

-23,636

6,148

26,690

-21,870

4,820

+11.6%

+8.1%

+27.6%


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Revenue

Cost of goods sold

Gross profit

Distribution costs

1-6/2015 1-6/2014 Change

29,784

-23,636

6,148

-2,592

26,690

-21,870

4,820

-2,419

+11.6%

+8.1%

+27.6%

+7.2%


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Revenue

Cost of goods sold

Gross profit

Distribution costs

Administrative expenses

1-6/2015 1-6/2014 Change

29,784

-23,636

6,148

-2,592

-312

26,690

-21,870

4,820

-2,419

-300

+11.6%

+8.1%

+27.6%

+7.2%

+3.8%


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Revenue

Cost of goods sold

Gross profit

Distribution costs

Administrative expenses

Other operating result

Operating profit


1-6/2015 1-6/2014 Change

29,784

-23,636

6,148

-2,592

-312

-331

2,914

26,690

-21,870

4,820

-2,419

-300

570

2,671

+11.6%

+8.1%

+27.6%

+7.2%

+3.8%

X

+9.1%


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Audi Group operating profitEUR million

2,9142,671

1-6/2014 1-6/2015

+9.1%

* EUR 46 million including depreciation in view of the revaluation of assets/liabilities for purchase price allocation.

Motorcycles segment

EUR 58 million*

Automotive segment

EUR 2,868 million


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Operating profit

Financial result

thereof result from investments

accounted for using the equity method

Profit before tax

2,914

236

226

3,150

2,671

430

265

3,102

+9.1%

-45.2%

-14.5%

+1.6%


1-6/2015 1-6/2014 Change


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Audi Group: Return on salesin percent

Operating return on sales Return on sales before tax

9.8

1-6/20151-6/2014

10.0

1-6/2014

10.6

1-6/2015

11.6


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Cash Flow Statement of the Audi GroupEUR million

Cash flow from operating activities

1-6/2015 1-6/2014 Change

3,860 3,712 +4.0%


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Investing activities

attributable to operating activities

1-6/2015 1-6/2014 Change

3,860

-2,001

3,712

-1,552

+4.0%

+28.9%


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Net cash flow

1-6/2015 1-6/2014 Change

3,860

-2,001

1,860

3,712

-1,552

2,160

+4.0%

+28.9%

-13.9%


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Net cash flow

Net liquidity


1-6/2015 1-6/2014 Change

3,860

-2,001

1,860

16,668

3,712

-1,552

2,160

15,324

+4.0%

+28.9%

-13.9%

+8.8%


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Forecast 2015

Outlook

Deliveries of cars of theAudi brand to customers

moderate increase

Revenue

moderate increase

Operating profit/Operating return on sales

within thestrategic target corridorof 8 to 10 percent

Return on investment (ROI)

with more than 18 percentsignificantly above the

minimum rate of returnof 9 percent

Net cash flow

more than EUR 2 billion

and below previousyears level

Ratio of investments inproperty, plant and equipment

slightly above the strategic

target corridor of5.0 to 5.5 percent


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Audi 2015 1st half


Audi 2015 1st half


Scott KeoghScott KeoghPresident, Audi of AmericaPresident, Audi of America


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Truth in EngineeringAudi

S A L E S1

F U T U R E3

P E R F O R M A N C E2


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10,

101

10,

881

14,

246

15,

65

3

16,

60

1

16,

867

11,

514

11,

455

17,

102

16,

827

18,4

28

18,2

62

Jan Feb Mar Apr May Jun

3,

161

3,

267

3,

886

3,

702

4,

16

2

3,

649

3,

730

3,

698

3,

881

3,

971

4,

40

5

4,

17

6

Jan Feb Mar Apr May Jun

2015 1st Half Year Sales

New car sales growth

New car sales total 93,615 and CPO sales total 23,861 through 1st half of 2015.

Record high new car and certified pre-owned sales

Certified pre-owned (CPO) sales growth

+ 11.0% YoY + 9.3% YoY



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2015 1st Half Year Sales

A3

More vehicles have been sold in 1st half of 2015 versus every full year before 2010.

75% of A3 buyers are new luxury owners A Segment sedan market share of 40%

Q3

71% of Q3 buyers are new luxury owners A Segment SUV market share of 25%

C/D Mix

Since 2012, our C/D mix has improvedfrom 18.6% to ~30%

Sales Mix

SUV sales +28.5% YoY

Cars

61%

SUV

39%



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S A L E S1

F U T U R E3



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Tier One Brand Consideration

Audi has solidly risen among New Luxury Buyers

1

2

3

4

5

6

7

8

2006 2007 2008 2009 2010 2011 2012 2013 2014

#2most cross-shopped

luxury brandSource: Strategic Vision NVES, 2014 Full Year Report



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Network Development

61 new terminals through 2014

34 new terminals planned in 2015

177 terminals planned by 2020

Currently 119 active dealer projects



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S A L E S1

F U T U R E3



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Product Launches

2016 launch of C SUV and B Sedan will compete in 43% of the luxury market.

2015

2016

TT A3 e-tron

Q7 A4 R8



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Future Technology

Battery Electric Vehicles Audi connect Autonomous Driving



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AoA Technology

Progressive Retail and ART



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Disclaimer

This presentation contains forward-looking statements and information on the business development of the AudiGroup. These statements may be spoken or written and can be recognized by terms such as expects,anticipates, intends, plans, believes, seeks, estimates, will or words with similar meaning.

These statements are based on assumptions relating to the development of the economies of individual countries,and in particular of the automotive industry, which we have made on the basis of the information available to usand which we consider to be realistic at the time of going to press. The estimates given involve a degree of risk,and the actual developments may differ from those forecast.

Consequently, any unexpected fall in demand or economic stagnation in our key sales markets, such as in WesternEurope (and especially Germany) or in China or the USA, will have a corresponding impact on the development ofour business.

The same applies in the event of a significant shift in current exchange rates relative to the US dollar, sterling, yenand Chinese renminbi.

If any of these or other risks occur, or if the assumptions underlying any of these statements prove incorrect, theactual results may significantly differ from those expressed or implied by such statements.

We do not update forward-looking statements retrospectively. Such statements are valid on the date ofpublication and can be superseded.

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